• 30 mins Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 5 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 6 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 7 hours Rosneft Signs $400M Deal With Kurdistan
  • 9 hours Kinder Morgan Warns About Trans Mountain Delays
  • 16 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 21 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
Alt Text

Is South America Set For A Gold Rush?

A Chinese gold miner is…

Alt Text

Gold Prices Could Spike As India Resumes Imports

Gold purchases in India imploded…

If You're Not Excited About Coal, You're Not Watching

If You're Not Excited About Coal, You're Not Watching

I've been on this topic a lot lately. But thermal coal continues to shape up as one of the most exciting stories of 2014.

Last week came more confirmation. From heavyweight coal importer India.

Industry analysts India Coal Market Watch reported that imports are continuing to rise at an unbelievable pace. In the seven months from April to October, total thermal coal shipments into India jumped 28%.

That equates to a year-on-year increase of about 18 million tonnes. Annualizing that seven-month figure, India's imports are on pace to grow by over 30 million tonnes for the current fiscal year.

These numbers imply that India's full-year imports could approach 140 million tonnes. A phenomenal number, when you consider that imports in fiscal 2011 came in at just under 50 million tonnes.

That's a lot of growth in just a few years.

This should firmly place India as the world's number two coal importer. Well ahead of major consumers like Japan and South Korea. Who will probably see imports of 100 to 110 million tonnes on the year.

India's shipments are now even challenging the world's number one coal importer: China. Whose total imports this year should be around 150 million tonnes.

And demand from all of the other big Asian consumers isn't slacking. Which begs the question: where is supply coming from to meet India's explosive demand?

Not Australia--the most important thermal coal supplier to Asia. Exports here are forecast to grow by just 13 million tonnes this year.

The answer appears instead to be Indonesia. Whose exports grew by 32 million tonnes year-on-year for the January to June 2013 period (the most recent data we have, at the moment).

This seems to suggest that Indonesian supply might be able to meet growing Indian demand.

But there's a catch. Indonesian coal is very low quality. Evidenced by utilities in China recently turning away from Indonesian supply, in favour of higher-quality coals.

If India is forced to make a similar move, things could get tight very fast. We'll see how this supply-demand chessboard plays out.

Here's to a lot of new tonnes,

By. Dave Forest




Back to homepage


Leave a comment
  • James on December 04 2013 said:
    Yet the US is hard pressed to export to Asia, keeping our prices low, when one factors in Our Dear Leader's aversion to coal.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News